Submission to the Strategic Examination of Research and Development discussion paper

A well-managed and funded Research and Development (R&D) sector can help Australia meet its social, environmental and economic challenges, building resilience and capability, and securing our nation's prosperity. However, falling investment in R&D since 2010 has left some fields that are critical to solving Australian and world challenges vastly underfunded. Low research investment has serious consequences for the Australian economy and Australian society, with research showing that Australian R&D returns $3.50 on average to the economy for every dollar invested. In specific fields, such as health and medical R&D this return rises to $5.80.

Australia cannot rely on innovation through the adoption of technologies invented elsewhere – we need local solutions to our local challenges. Arresting these declines is vital to our nation’s prosperity.

In addition to the recommendations for R&D contained in ATSE's recent Boosting Australia’s Innovation report, ATSE makes the following recommendations:

Recommendation 1: Establish a government agency to coordinate and guide all state, territory and federal government research funding (including research infrastructure funding), reducing red tape and ensuring efficient and strategic use of research funding to support national challenges.

Recommendation 2: Continue and expand the Cooperative Research Centres and CRC Projects grants.

Recommendation 3: Support academic secondments to industry through industry placements and updating academic hiring, promotion, grant assessment and award criteria to better recognise industry collaboration and experience.

Recommendation 4: Adopt a public access model for Australian research to ensure Australian industry and governments have access to the most up-to-date research possible.

Recommendation 5: Provide increased support and incentives for academic researchers to prioritise genuine and respectful collaboration with Traditional Knowledge holders.

Recommendation 6: Re-establish the Enterprise Connect program to support Small and Medium-size Enterprises to engage meaningfully with, and benefit from, R&D.

Recommendation 7: Use government procurement policy and accelerated grant application processes to support SMEs to engage in R&D.

Recommendation 8: Establish directed R&D rebates and Revenue Contingent Loan Schemes for companies that invest in collaborations with academia or government, or for R&D aligning with national science and research priorities.

Recommendation 9: Establish moonshot grant schemes that support researchers to conduct high-risk, high-reward research.

Recommendation 10: Leverage international funding schemes, like the Horizon Europe Research Fund, to support Australian R&D. 2

Recommendation 11: Leverage existing peer review processes to match potential philanthropic and not-for-profit research funders with high-quality research opportunities across all government research funding agencies and programs.

Recommendation 12: Incentivise philanthropic and not-for-profit investment in R&D through a coordinated matched funding scheme.

Recommendation 13: Develop an integrated whole-of-lifecycle strategy that invests in programs that increase the number of students undertaking pathways to join an R&D-ready workforce

Recommendation 14: Fully implement and fund the recommendations of the Australian Universities Accord and the Diversity in STEM review.

Recommendation 15: Invest in creating permanent or long-term contract positions for early career researchers to create job security and maintain the R&D workforce.